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Telia divests its interest in Turkcell Holding for USD530m.

NORDIC BUSINESS REPORT-June 19, 2020-Telia divests its interest in Turkcell Holding for USD530m

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Swedish telecoms provider Telia Company AB (STO:TELIA) has agreed to sell its 47.1% holding in Turkcell Holding, which owns 51.0% in Turkcell Iletisim Hizmetleri, to the state owned Turkey Wealth Fund for USD530m, thereby completing its exit from Turkey.

This transaction also includes, subject to closing, a full and global settlement of all shareholder disputes and litigations connected to Turkcell and Turkcell Holding.

According to Telia, this divestment of its stake in Turkcell Holding is the final piece in its Turkish exit plan. Over the past few years, the company's focus has been its core Nordic and Baltic markets.

Telia added with this divestment, it unwinds a long-lasting legal deadlock, reduces risk, improves leverage and increases liquidity, which will generate better shareholder returns in its core markets.

Since the divestment of its 14% direct ownership in 2017, Telia has not been a direct owner of Turkcell Iletisim. Fintur, which was jointly owned with Turkcell, was dissolved in 2019, further limiting Telia's direct involvement with Turkcell.

UBS has issued a Fairness Opinion to Telia that confirms that the price is fair from a financial perspective.

Closing of the transaction, which is subject to regulatory approvals and an annual general meeting of Turkcell, is expected during the second half of 2020.

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Publication:Nordic Business Report
Date:Jun 19, 2020
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